By Lawrence G. McMillan, MarketWatch
The oversold conditions that existed last week generated a strong four-day rally. Can the market continue to push higher from here, or was that it — an oversold rally that has run its course?
We’ll probably have a good idea very quickly. Standard & Poor’s 500 Index /zigman2/quotes/210599714/realtime SPX +0.75% rallied through its (still-) declining 20-day moving average. It then broke through resistance at 2,100. That move above 2,100 was constructive, but the chart won’t really turn bullish until new highs are made and held, and there is a lot of resistance between here and new highs. That would require a move above 2,135.